Greif Bros Corporation (GEF)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,508,100 | 5,448,100 | 5,339,400 | 5,215,500 | 5,153,400 | 5,218,600 | 5,406,000 | 5,697,800 | 6,056,200 | 6,349,500 | 6,431,900 | 6,300,600 | 5,973,900 | 5,556,100 | 5,139,200 | 4,731,400 | 4,549,100 | 4,515,000 | 4,585,800 | 4,755,400 |
| Total current assets | US$ in thousands | 1,597,100 | 1,548,700 | 1,713,300 | 1,614,200 | 1,389,300 | 1,369,100 | 1,443,400 | 1,481,700 | 1,471,500 | 1,489,800 | 1,647,700 | 1,616,800 | 1,704,000 | 1,664,100 | 1,566,900 | 1,382,700 | 1,346,300 | 1,302,800 | 1,305,900 | 1,247,900 |
| Total current liabilities | US$ in thousands | 877,500 | 1,014,400 | 1,010,200 | 1,026,400 | 882,700 | 939,300 | 951,200 | 937,400 | 880,500 | 1,047,900 | 1,116,000 | 1,121,900 | 1,280,500 | 1,314,100 | 1,241,700 | 1,109,900 | 990,500 | 1,000,100 | 914,900 | 840,500 |
| Working capital turnover | 7.65 | 10.20 | 7.59 | 8.87 | 10.17 | 12.14 | 10.98 | 10.47 | 10.25 | 14.37 | 12.10 | 12.73 | 14.11 | 15.87 | 15.80 | 17.34 | 12.79 | 14.92 | 11.73 | 11.67 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,508,100K ÷ ($1,597,100K – $877,500K)
= 7.65
Greif Bros Corporation's working capital turnover has fluctuated over the past few years, ranging from a high of 17.34 in April 2021 to a low of 7.59 in July 2024. The working capital turnover is a measure of how effectively the company is using its working capital to generate sales revenue.
A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales, while a lower ratio may suggest inefficiencies in managing working capital.
During the period under review, Greif Bros Corporation's working capital turnover peaked in April 2021 at 17.34, indicating that for every dollar of working capital invested, the company generated $17.34 in sales revenue. This suggests efficient management of working capital during that period.
However, there was a significant decline in the working capital turnover ratio in the following quarters, dropping to 7.59 in July 2024. This sharp decrease might indicate potential issues with managing working capital effectively to support sales growth during that particular period.
Overall, analyzing the working capital turnover ratios provides valuable insights into Greif Bros Corporation's efficiency in utilizing its working capital to drive sales growth, highlighting periods of effective and ineffective management of working capital.